An Indian man who fled Australia after killing a student in a hit and run has been granted bail while awaiting extradition.

Puneet Puneet, 24, pleaded guilty to culpable driving after the 2008 death in Southbank of Gold Coast man Dean Hofstee.

He fled Australia on a friend's passport in 2009, and eluded capture for four years.

Puneet was granted bail in the Delhi High Court on May 28 after his lawyer claimed he was suffering from a life-threatening kidney condition, the ABC has reported.

In granting the application for bail, Judge Vipin Sanghi said it appeared Puneet needed medical care that may not be available in a prison hospital.

"The petitioner is a young person of 24 years of age and his medical condition does not appear to be particularly good," Judge Sanghi said.

Puneet's extradition hearing is on July 9.

If extradited to Australia, he faces up to 20 years in prison.

Victoria Police has confirmed Puneet was bailed on medical grounds.

A police spokeswoman said Mr Hofstee's family had been notified.

Police would not make further comment while the matter was still before the courts.

Puneet's lawyer Kanhaiya Singhal told the ABC his client had been released on bail but would not disclose his whereabouts.

Under bail conditions, Puneet was required to submit a $4000 bond, provide the court with a phone number and ensure the phone is kept "in running condition," the lawyer said.

An Australian Federal Police spokesman told the ABC it was inappropriate to comment on a matter currently before the courts.

In October 2008, then 19-year-old Puneet was driving at 150km/h with a blood alcohol reading of 0.165 when he lost control of his car and hit Gold Coast students Dean Hofstee, also 19, and Clancy Coker on City Road in Melbourne's Southbank.

Mr Hofstee was killed and Mr Coker seriously injured.

Puneet initially said a cat had run on the road distracting him and that he had "sore eyes", but later pleaded guilty to culpable driving.

In 2009, he fled Australia on a friend's passport before he was sentenced, and evading capture for four years, despite police surveillance, including phone taps of his family and friends, and a reward of $100,000.

In 2013, police acting on a tip-off from a friend of Puneet's captured him at a hotel in the nearby city of Panipat, where he had travelled to meet the woman he intended to marry, and her family, to plan their wedding.